Correlation Between BAIGAI and Sparinvest Lange
Specify exactly 2 symbols:
By analyzing existing cross correlation between Investeringsforeningen Bankinvest and Sparinvest Lange, you can compare the effects of market volatilities on BAIGAI and Sparinvest Lange and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in BAIGAI with a short position of Sparinvest Lange. Check out your portfolio center. Please also check ongoing floating volatility patterns of BAIGAI and Sparinvest Lange.
Diversification Opportunities for BAIGAI and Sparinvest Lange
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BAIGAI and Sparinvest is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Investeringsforeningen Bankinv and Sparinvest Lange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sparinvest Lange and BAIGAI is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Investeringsforeningen Bankinvest are associated (or correlated) with Sparinvest Lange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sparinvest Lange has no effect on the direction of BAIGAI i.e., BAIGAI and Sparinvest Lange go up and down completely randomly.
Pair Corralation between BAIGAI and Sparinvest Lange
Assuming the 90 days trading horizon Investeringsforeningen Bankinvest is expected to generate 2.17 times more return on investment than Sparinvest Lange. However, BAIGAI is 2.17 times more volatile than Sparinvest Lange. It trades about 0.11 of its potential returns per unit of risk. Sparinvest Lange is currently generating about 0.05 per unit of risk. If you would invest 9,968 in Investeringsforeningen Bankinvest on August 29, 2024 and sell it today you would earn a total of 4,517 from holding Investeringsforeningen Bankinvest or generate 45.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.78% |
| Values | Daily Returns |
Investeringsforeningen Bankinv vs. Sparinvest Lange
Performance |
| Timeline |
| Investeringsforeningen |
| Sparinvest Lange |
BAIGAI and Sparinvest Lange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BAIGAI and Sparinvest Lange
The main advantage of trading using opposite BAIGAI and Sparinvest Lange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAIGAI position performs unexpectedly, Sparinvest Lange can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sparinvest Lange will offset losses from the drop in Sparinvest Lange's long position.| BAIGAI vs. Jyske Invest Nye | BAIGAI vs. Jyske Invest Korte | BAIGAI vs. Jyske Invest Nye | BAIGAI vs. Jyske Invest Virksomhedsobligationer |
| Sparinvest Lange vs. Investeringsforeningen Danske Invest | Sparinvest Lange vs. Sparinv SICAV | Sparinvest Lange vs. Investeringsforeningen Danske Invest |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |